Unlike the stock market, bonds, or CDs, Real Estate investing provides added security for your investment as it is backed by insurance and physical assets.
Real estate can provide diversification within a portfolio of traditional investments such as stocks and bonds.
Tenants cover your mortgage payments providing another means of supercharging your equity buildup over time.
Real estate investments offer a streamlined path to wealth through the double-edged sword of a monthly cash flow and asset appreciation.
Over the long-term, real estate may provide a hedge against inflation since property values and rental income typically increase during periods of inflation.
Enjoy the full suite of tax benefits associated with real estate ownership including depreciation, pass-through losses, capital gains, and more.
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High Cash Yield |
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Low Volatility |
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Equity Build Up |
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Leverage |
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Hard Asset |
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Inflation Hedge |
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Tax Advantage |
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Average Annual Return* |
14-16% |
12% |
10% |
4.25% |
3.75% |
3.5-4.25% |
The value of residential real estate is determined by recent comparable sales in the area. Conversely, commercial multifamily properties are valued based on their net operating income (NOI) and market capitalization rate (CAP Rate). This allows investors to have greater influence on value add potential as NOI can be controlled within day-to-day management operations.
Value add multifamily real estate is the perfect balance of risk and return. The opportunity for forced appreciation through renovations and asset-repositioning leaves room for substantial returns, while also mitigating the risks associated with other multifamily asset classes.
A large tenant pool means a much lower hit to overall vacancy when any single tenant moves out, and more consistent/predictable tenant turnover. This significantly lowers the risk that an investor will need to come out of pocket in order to cover debt costs during vacancy, and allows for more consistent adjustment to market rental rates.
Multifamily properties allow additional room for cost segregation studies and accelerated depreciation in the very first year of the investment.